Functions and CALL Routines |
Category: | Financial |
Syntax | |
Arguments | |
Details | |
Examples |
Syntax |
COMPOUND(a,f,r,n) |
is numeric, and specifies the initial amount.
Range: | a 0 |
is numeric, and specifies the future amount (at the end of n periods).
Range: | f 0 |
is numeric, and specifies the periodic interest rate expressed as a fraction.
Range: | r 0 |
is an integer, and specifies the number of compounding periods.
Range: | n 0 |
Details |
The COMPOUND function returns the missing argument in the list of four arguments from a compound interest calculation. The arguments are related by the following equation:
One missing argument must be provided. A compound interest parameter is then calculated from the remaining three values. No adjustment is made to convert the results to round numbers.
If n=0, then and are equal to 1.
Note: If you choose r as your missing value, then COMPOUND returns an error.
Examples |
The accumulated value of an investment of $2000 at a nominal annual interest rate of 9 percent, compounded monthly after 30 months, can be expressed as
future=compound(2000,.,0.09/12,30);
The value returned is 2502.54. The second argument has been set to missing, indicating that the future amount is to be calculated. The 9 percent nominal annual rate has been converted to a monthly rate of 0.09/12. The rate argument is the fractional (not the percentage) interest rate per compounding period.
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